All Questions

286
votes
15answers
50k views

Best way to start investing, for a young person just starting their career?

I am young, just started my career, and looking to begin investing so I can make my money work for me. I'm still living like I did in college (occasional purchase on myself, but most of it goes into ...
249
votes
12answers
111k views

I received $1000 and was asked to send it back. How was this scam meant to work?

Possible Australianism - netbank = a website + app by which an Aussie can do their banking, including transferring money to other people. A while ago, I ended up with $1000 transferred into my ...
241
votes
18answers
95k views

Who can truly afford luxury cars?

I never really thought about money until one day I checked how much I made compared to the rest of America. The calculator said my household income is in the top 20%. Kind of funny to me, because I ...
197
votes
21answers
67k views

Why isn't everybody rich?

This question came up after reading this question (stock market long term risks), in which it is re-iterated (as it has been many times on this site), that investing in the stock market, especially an ...
182
votes
19answers
23k views

How smart is it to really be 100% debt free?

For the last 2 years, I have been trying hard to be debt free without affecting my personal cash flow. I am by no means a rich person, but I have a decent salary. I still have debt, specifically ...
177
votes
13answers
43k views

Why would a company care about the price of its own shares in the stock market?

After a company has issues shares, why should it care if the value of the shares go up and down? Since the shares are now being traded among the public, if the value goes up or down, that is strictly ...
176
votes
23answers
58k views

What options do I have at 26 years old, with 1.2 million USD?

I'm a 26 years old female, got into an accident that almost killed me; I sued, and after attorneys fees and medical bills from hell... I will walk away with around 1.2 million dollars tax free. Here ...
173
votes
6answers
38k views

Found a heap of BTC but have no documentation. What do I do?

Many years ago, I bought around 400 BTC for a few hundred dollars (?) and stored them in a hard drive. Shortly after that, I lost this hard drive, wrote it off as an "Oh well" and didn't think ...
172
votes
15answers
42k views

Friend was brainwashed by MLM-/ponzi investment scam. What can I do?

Recently a friend of mine invited me to hear about “an interesting chance to simply earn money.” Basically we and other invited people drove to a meeting room where a speaker told us about a growing ...
164
votes
6answers
29k views

What happens to people without any retirement savings?

I'm not sure if this is a naive question. I'm struggling mightily with a family member (and everyone has a similar story) who just cannot make the right financial decisions. This person will forever ...
160
votes
10answers
33k views

I'm supposedly eligible for an inheritance from a distant relative. Offer appears to be legitimate

About 12 months ago, I received a letter ostensibly from a company carrying out genealogical research for law firms. It said that they were dealing with the estate of someone who had left money to my ...
151
votes
10answers
36k views

My friend wants to put my name down for a house he's buying. What risks would I be taking?

My good friend, who I have known since we were kids, asked me for a favor today. He originally intended to get a house with his now ex-girlfriend so that he could invest in one and later on, sell it. ...
148
votes
24answers
50k views

Why do people save so much?

When I am old and retired (70 years +), I don't plan to spend a lot of money. I'll be living in my own house that is already paid off at that point, so no rent or mortgage payments. Since I don't need ...
148
votes
21answers
49k views

If a stock doesn't pay dividends, then why is the stock worth anything?

I read somewhere that companies are not required to pay dividends to shareholders (this is correct, yes?). If so, then if company A never pays dividends to its shareholders, then what is the point ...
144
votes
10answers
30k views

Do I make money in the stock market from other people losing money?

Basically I am new to stock trading and neglect to see the differences between trading stocks and betting on sports. Basically I am "betting" on which company will do well, and this can change due to "...
139
votes
15answers
29k views

For very high-net worth individuals, does it make sense to not have insurance?

Various types of insurance (health, car, life) protect you from relatively low probability but very expensive events in life (cancer, serious car accident, etc.) For the average person, it makes sense ...
123
votes
13answers
64k views

I'm 23 and was given $50k. What should I do?

Recently I was given 50k from my grandmother in her will. I am 23 years old and have no idea what to do with it. I make $33k a year. I have zero savings. I owe $35k in student loans over 6 years 0% ...
121
votes
23answers
20k views

Why buy insurance?

I don't understand why people buy insurances when they know that odds are is not their favor. Is it not better bet to stay uninsured, and save money? I am not talking about house insurance. About ...
119
votes
12answers
34k views

Tenant claims they paid rent in cash and that it was stolen from a mailbox. What should I do?

I own a duplex, live in half, and rent out the other half to college students. I have just made a mistake that cost me $750. One of my tenants was late paying her rent. I'd thought it was still late, ...
117
votes
13answers
16k views

Why does gold have value?

I'm curious about why is there so much financial interest and news coverage about gold. It's hard to do things like buy food or pay the rent with gold, but I can do this with cash. Gold doesn't yield ...
115
votes
8answers
19k views

Oversimplify it for me: the correct order of investing

I have been reading the top posts here, and the recommendations for what to invest in are often similar. What I'd like to know, in as simply of terms as possible, is what the consensus is on priority ...
114
votes
19answers
28k views

Should I buy my house in cash, or with a mortgage and invest the rest of my money?

I can afford to buy a house (to live in myself) in cash. Most of my investor friends tell me this would be a dumb idea, because I could earn more in interest by buying the house with a mortgage and ...
112
votes
2answers
629k views

Is it safe to give out one's bank account number?

I'm managing the utility of the house and I'm sharing with another person. He asks me to provide my bank account number, so that he can transfer his money to my account when paying the utility. I ...
111
votes
3answers
429k views

Can someone explain a stock's “bid” vs. “ask” price relative to “current” price?

In my online brokerage account, I want to buy a particular stock and I see the following: Bid: 13.20 x200 Ask: 13.27 x1,000 the current stock price is 13.22. Can someone explain what ...
107
votes
20answers
28k views

Are lottery tickets ever a wise investment provided the jackpot is large enough?

If the odds of winning a lottery jackpot are one in 292 million, and the jackpot prize is expected to be greater than than $1 billion, does this make a lottery ticket a wise investment? I know there ...
106
votes
13answers
25k views

Should I take out a loan to pay off a relative's credit card debt?

Recently a close relative revealed to me that she has run up $40,000 in credit card debt over the last few years, which she can no longer manage because the interest payments are eating up all of her ...
106
votes
21answers
34k views

My million-dollar brother wants his retirement. Should he?

My brother is 37 years old and works in a very stable job earning $150,000 annually. He has his own house, a fianceé and a total of $950,000 in the bank (including stocks, real state and bonds). He ...
105
votes
8answers
28k views

Scamming an investor by offering a quick sale of a property at her named price

My mother-in-law was approached by an old friend who she hadn't heard from in a couple of years with a "business proposition" which is almost certainly a scam. I don't really understand how the scam ...
104
votes
12answers
88k views

In the stock market, why is the “open” price value never the same as previous day's “close”?

This is something that is mind-boggling to me, and it is particularly obvious in candlestick graphs: Why is the open value never the same as the previous day's close value? This is something I just ...
104
votes
13answers
17k views

Does it make sense to insure something when you could financially bear its loss?

I'm wondering whether it makes sense to insure something if its loss would not be life-changing. I want to buy a boat to live on while I attend university. It would cost about 10,000 dollars and my ...
100
votes
10answers
30k views

How is Bitcoin useful as a currency if so few services accept it?

I've done research on bitcoin and I know what it is and how it works, kinda. I've even built a small block chain app. What I don't understand, and I haven't been able to find the answer to, is if ...
100
votes
11answers
22k views

Debt collector has wrong person and is contacting my employer

A debtor with my same first and last name and middle initial owes a student loan debt for a college in another state I never attended. The debt collectors have my previous address listed on the notice,...
98
votes
13answers
22k views

Isn't “I bought [blank] as a tax writeoff” complete nonsense?

There's a trope in movies where people do something to keep from being bumped into a higher tax bracket (For example, in The Big Lebowski: "I'll have to check with my accountant, but it might bump me ...
98
votes
11answers
21k views

Why does the introduction of chip & pin appear to be so controversial in the United States?

The past few weeks there have been many news articles about the introduction of chip & pin in the United States; most of these articles are against it and citing such 'issues' as: "Some people ...
96
votes
5answers
49k views

Is this person doing illegal money transfers?

This girl that I'm friends with and have actually seen in person before, keeps posting [on social media] that she "loves when the transfer goes through" and gets $2000-$6000 for free quite often. She ...
94
votes
14answers
9k views

Should I finance a new home theater at 0% even though I have the cash for it?

My wife and I are considering buying a home theater - plasma TV & new stereo - on Black Friday this year. We do have the cash for it, but Best Buy is offering 0% financing for up to 3 years on ...
93
votes
9answers
22k views

When someone's ability to pay is suspect, why would it make sense to give them more expensive credit?

Answers to the recent question "Why don't bond makers just get loans?" Seem to take it as a given that lending someone money at a 12% interest makes sense when there is already doubt about their ...
93
votes
8answers
23k views

How to deal with the credit card debt from family member that has passed away?

My father recently passed away and had some considerable amount of debt on his credit cards. House and credit card were in the deceased’s name only. The state that is happening in is New Jersey. In ...
93
votes
9answers
11k views

Why should we expect stocks to go up in the long term?

I have read in many personal finance books that stocks are a great investment for the long term, because on average they go up 5-7% every year. This has been true for the last 100 years for the S&...
92
votes
19answers
30k views

Are my parents ripping me off with this deal that doesn't allow me to build my equity in my home?

When I bought my condo with cash for $155k, I paid $40k of my own money and my parents lent me $115k. Our agreement was that when I eventually sold the condo, my parents would get 75% of the gross ...
92
votes
7answers
18k views

Why is stock dilution legal?

What I always heard, since I was a child, was that if you own a stock share, you actually own a small share of a company. That seems to be the general consensus of what a stock share is. Well, that ...
91
votes
16answers
25k views

How do people know if there are sufficient funds available when accepting payment by check?

I don't know a lot about paper checks because I have never seen one, and I don't live in America. Suppose person A gives person B a check for $100,000 in payment for something in a shop. How can B be ...
91
votes
11answers
10k views

Where can I park my rainy-day / emergency fund? Savings accounts don't generate much interest

Savings accounts don't seem to generate much interest. What other options do I have for my emergency fund?
90
votes
9answers
18k views

Do people tend to spend less when using cash than credit cards?

I know this is a popular theory on this site and finance blogs/media in general, but I'd like to know if there is any reliable research on the subject. I can share personal experience that makes me ...
90
votes
4answers
17k views

Is it true that the price of diamonds is based on a monopoly?

I've heard quite often that the only reason diamonds have the high value they have is because the price is set by a single worldwide diamond mining monopoly. That, if actual quantity versus demand is ...
89
votes
10answers
68k views

Scam or Real: A woman from Facebook apparently needs my bank account to send money

A woman on Facebook recently contacted my dad. She asked him to get a bank account so she could send him money, and he would send money to her employees (about 12 people), and she would pay him for ...
89
votes
7answers
19k views

What should I do about a dealer that took a deposit then sold my motorcycle to someone else?

I recently was interested in purchasing a motorcycle from a dealer but I was about to be out of town for a few days for a vacation. I called him and said I can make a deposit on the bike for $500. He ...
88
votes
5answers
30k views

Nigerian scammer openly say they are from Nigeria - but why?

I know that a significant part of Nigerian scammers are indeed working from Nigeria. A scam starts with exchanging messages. Physical contact is not to be expected. It is widely known that scammer ...
88
votes
13answers
31k views

Can saving/investing 15% of your income starting age 25, likely make you a millionaire?

I came across this article. It states, The plan calls for young people to put 15 percent of their salary into a savings account — whether it be an IRA, 401(k) or taxable account — starting at ...
87
votes
15answers
32k views

Spouse wants to pay all debt in a month but I don’t. Is this a good idea?

Between both of our student loans and car loan, we are in the hole about $48,000. My spouse is adamant about paying off all debt in the next month or two since we currently have about $55,000 in the ...

15 30 50 per page